asn market snapshot: india 2013

© Asia Media Partners Pte Ltd.

MARKET SNAPSHOT India 2013 Report compiled: 15th July 2014

Disclaimer Asia Media Partners Pte Ltd shall not be held accountable by law for any inaccuracy of data contained herein. ASN is commiGed to the quality and relevance of its services and makes every effort to ensure that its data is accurate. We invite users to report any inaccuracy to [email protected]. Data correct as of 15 July 2014


Overview India is the 2nd biggest market for Sponsorship in Asia and represents one fiCh of all spend in Asia

•  But in 2013 sponsorship spend fell 12% effected mainly by the withdrawal of Airtel’s giant cricket sponsorship. The telco Utle sponsored all of the naUonal teams internaUonal matches on home soil: a deal reported at USD116m per annum

•  This loss was further compounded by Sahara’s rejecUon of the BCCI’s (Board of Cricket Control for India) team sponsorship package and another USD32m of annual revenues evaporated

•  Contrarily, Indian deal volumes (number of trades) rose 10% from 1,606 to 1,775. But this volume upUck has failed to fill the hole in the sponsorship economy •  The BCCI has been replacing lost deals – e.g. Star

India’s team sponsorship – but, firstly, they only kick in in 2014 and secondly, they will appear at lower values. Star is paying USD18.5 p.a., a much lower aucUon rate than the last round (i.e. Airtel’s) in 2010. Despite all these gross market movements

Sport vs Non-‐Sport •  There has been a gradual 4-‐year shib towards Non-‐

sport (37% vs. 15%) over dominance of Sport •  This tallies with the Asia Index which has moved

to 72/28% in favour of Sport, from 85/15% in 2009

•  Non-‐sporUng investment grew 27% in 2013 while Sport retreated 26%

ASN Forecast •  Snapshots taken today would indicate that the

market will grow +/-‐ 7% in 2014 to USD715m on deal volumes approaching 1,950

•  This forecast sUll falls below India’s peak of USD765k in 2011

Deal Volume: 2010-‐2014F

ASN Index: India

Sport vs. Non-‐sport splits


Categories ConcentraPng on the leading 5 categories (the “ASN5: India”):

•  CPG (1) is the largest spending category -  The category jumped 37% in value terms in 2013 -  Share of all categories also jumped from 38% to

25% -  Included in this category are foods, drinks

(alcoholic and non-‐alcoholic), all types of cosmeUcs and consumer products

•  Telco (2) was #1 in 2012 but halved in value in 2013 due principally to Airtel’s USD116m p.a. pullback from their partnership with the Indian NaUonal Cricket team. This had been the largest single deal of 2012…

•  Retail (3) improved nicely with a 27% gain

•  But Automobile (4) and Conglomerate (5) spend fell away 20% and 47% respecUvely

•  ASN5: India contributed 69% to the whole Index in India. In 2012, that was 71% showing a greater, yet marginal, spreading of spend across all 19 categories

Categories: All Asia •  There are strong similariUes in category spend when

compared to the the leading five categories on a Pan-‐Asian basis (ASN5: Asia). They were: 1.  CPG 2.  Retail 3.  Telco 4.  Financial Services 5.  Auto

NB ASN is able to give greater granularity by evalua:ng the category sub-‐sets among the 19 ‘parent’ categories that we roll up here. Please contact us on [email protected] for more informa:on

Spend by Category, USD (2013 vs 2012)

Share of Spend by Category, Top 10 (2013 vs 2012)

2013


Top 25 Deals The largest deals of 2013 all came from Sport

•  2/3 from Cricket, 1/3 from Motorsports (in volume not value terms)

•  Few deals came from outside of the Top 10 categories

•  Cross-‐secUon of Event-‐based sponsorship, Content and CelebriUes & Teams endorsement -  no Annual ProperUes, nor Stadia – ASN’s other 2

larger classificaUon ‘Genres’

Spend by Category, Share (2013 vs 2012)

2013

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asn market snapshot: india 2013

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